The supply curve for a commodity will shift downward when an excise tax is imposed.

Name: The supply curve for a commodity will shift downward when an excise tax is imposed.
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Question

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An excise tax increases the cost of production for firms, which decreases their profitability and incentive to produce. This causes a decrease in the quantity supplied and a shift of the supply curve downward.

The Supply Curve for a Commodity Will Shift Downward When